DOE to probe contract between Catanduanes co-op, suppliers

Business Mirror
10 Jul 2014 Written by Lenie Lectura

ENERGY Secretary Carlos Jericho L. Petilla said on Thursday it will thoroughly review the contract between First Catanduanes Electric Cooperative Inc. and its power suppliers for possible violation.

“We are reviewing to see if the breaches in their contract requires action,” Petilla when sought for comment said.

Catanduanes is currently experiencing up to 20 hours of brownout a day for the past two months. It blames old generating sets which no longer produce power at optimum level, said First Catanduanes Electric Cooperative Inc. Engr. Samuel V. Laynes.

Laynes also cited the frequent malfunctioning generating sets of Cost Plus, the Indian firm that was contracted by the National Power Corp. Napocor to provide 2.6 megawatts (MW) of additional capacity for the province.

Laynes said he already asked the Napocor to end the deal with Cost Plus as early as April 29 as it failed to deliver on its contract. However, it took another two months to decide that there is a need to look for a new provider. Laynes said the delay led to the serious power situation in Catanduanes every time the Cost Plus generating sets are not operating.

Right now, Laynes said even if all the generating facilities are running, the actual total power output is only at 8.8 MW, which is short of the 9.3-MW requirement.

“The establishments in Catanduanes are really suffering because of these power outages, especially the tourism facilities, schools, restaurants, ice-cream parlors and frozen food retailers. We need immediate and long-term solutions, which is why we are seeking the intervention of President Aquino and Secretary Petilla,” Laynes said.

He said even the provincial government of Catanduanes has recognized the damaging impact of the rotating brownouts when it recently declared a state of emergency.

Laynes said the DOE should direct the Napocor to be “more pragmatic and decisive” in addressing the power deficiency in the province.

The Napocor was also urged to conduct a technical audit of the power situation in Catanduanes because “it appears it is not getting the real picture from its local and regional units in the area.”

“The DOE and Napocor should send a competent audit firm to conduct a technical audit because there are generating sets that are already scrap but are still being included in the rated capacity and are even getting allocations for spare parts and diesel,” Alejo Tatel, a local businessman, said. source